Give your child a head start with a Scottish Friendly Child Bond
Children grow so quickly which means it is critical to start thinking about saving when they’re young. By saving from just £10 to £25 a month with Scottish Friendly’s child bond immediately you could make all the difference when they are older. For example helping to pay for university fees or to find the money for a first home.
You can save tax-free for any child with a Scottish Friendly Child Bond. It’s tax-free because it’s a friendly society savings plan, which means that under current legislation it grows free of income or capital gains tax. It’s an ideal way for parents, grandparents, family members and friends to make a huge financial difference when the little ones are older.
Basically the Child Bond is a with-profits investment plan: It invests for long-term growth as well as a degree of security, in stocks and shares, fixed interest funds and cash
Funds grows by way of the addition of potential annual bonuses and at the point where the bond reaches maturity there’s a tax-free payout. The value of bonuses is dependent on how much profit we make and how we distribute it. Please note that bonuses are not guaranteed.
The Child Bond runs for a minimum of 10 years, but it is possible to invest for longer should you like - perhaps to coincide with an 18th or 21st birthday. You can save either monthly, annually or with a lump sum payment.It’s completely up to you. Please note if the plan is cashed in prior to the end of the term, the amount the child will get back may be less than the amount paid in.
If you opt for the monthly option, you can start saving from as little as £10 a month - up to a maximum of £25 monthly. Or you can make yearly payments of up to £270 a year.
You can also take care of all of the premiums in one go through our lump sum funding plan. If you invest the maximum amount of £2,340 for ten years, this actually invests £270 a year into the Child Bond - a total of £2700. The minimum lump sum of £1,040 will provide £120 a year for 10 years - a total of £1,200. This provides a way for you to take care of all your premiumsat once and is especially popular with grandparents who like the reassurance of knowing all premiums for the entire term of the plan are taken care of.
Life cover is also included with this plan so you should consider if this is appropriate for your financial needs.
